Posted on: Friday, February 4, 2005
Kipapa Gulch bunkers set to be rented for storage
By Andrew Gomes
Advertiser Staff Writer
Ford Island Properties LLC intends to make use of the Navy's former 515-acre Waikele Naval Magazine by turning 128 bunkers ringing the bottom of Kipapa Gulch into a cheap self-storage facility.
The company signed a three-year lease with an affiliate of local real-estate development firm Hawaiian Island Development Co. headed by Peter Savio, who said he expects to provide storage for small businesses at substantially below market prices.
Savio said neighboring businesses and residents contacted so far are generally accepting of the use, in part because there would be security to deter the presence of vandals and the homeless in the gulch just west of Waikele Center.
The bunkers also would effectively bring 512,000 square feet of warehouse space, nearly the size of Waikele Center or Windward Mall, on line in an exceptionally tight industrial real estate market. Spaces are expected to be ready for occupancy by the end of the month.
Each bunker is 4,000 square feet with a heavy steel door, ventilation system and interior light fixtures but no power.
"It's just a cave," Savio said. "It's not real quality storage, but it's good storage."
Mark Ambard, a local industrial real-estate broker handling leasing for the project, said users can hook up generators to run interior lights. Security and port-a-potties are to be provided.
Prices per bunker are about $1,400 a month, which equates to 35 cents a square foot, or roughly a third less than typical market rent for similar size warehouse space on O'ahu, Ambard said.
Savio said he envisions contractors taking much of the space, though the dry, ventilated tunnel-like spaces could be suitable for legal files, Christmas decorations for a shopping center or other uses requiring a lot of space.
The bunkers previously were used by the Navy to store ammunition, which was removed in the 1990s. Ford Island Properties leases the gulch, which recently has been used to film parts of the ABC television series "Lost." The company expects to assume fee-simple ownership in the next few years.
Ford Island Properties, formerly known as Fluor Hawaii LLC, is paying the Navy more than $80 million for the property plus housing at Kalaeloa and 65-year leases of property at Iroquois Point, Pu'uloa and Halawa Landing.
Savio said he settled on a three-year lease at Waikele to test the market, but that the agreement could be extended.
"There's not much else you can do," he said.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
